Andy Staples on Cals Contract

[LXWildcat]

Basically Cal is not owed $33 million upfront, he isn’t owed anything upfront. Kentucky would have 6 years to pay the full amount. That’s $6 million a year, so let’s say Cal leaves for another job and his salary at the new job is $4 million, that would offset the buyout cost and Kentucky would only pay $2 million a year. I think it’s doable, Mitch’s legacy is riding on the biggest decision of his career.

 

[AGEE11]

One of the fine folks on here has been posting this for a while, can't remember who though.

Problem is, what if Cal doesn't take a new job, he is a petty human being after all and may want to stick it to UK if he is fired.

If the new coach gets $8 mil, Cal's $6 on top is $14 million. Now what if coach #2 doesn't work out and you're in double buyout range?

Lord I hope the Michigan rumors are true

 

[ciphercomplete]

Its only 6 years that UK has to pay the Cal buyout. The new Coach would be given at least 3 years. Its not as big of a hole as some folks are making this out to be.

Plus the likelihood of Cal not taking another job out of spite when he is really trying to get Brad into coaching is off base. Cal would take another job and Brad would be on staff.

 

[TankedCat]

Scott Drew isn't an $8m a year coach

but if what I've read on this thread is true, then Cal is gone.

 

[FitchandMurray29]

Basically Cal is not owed $33 million upfront, he isn’t owed anything upfront. Kentucky would have 6 years to pay the full amount. That’s $6 million a year, so let’s say Cal leaves for another job and his salary at the new job is $4 million, that would offset the buyout cost and Kentucky would only pay $2 million a year. I think it’s doable, Mitch’s legacy is riding on the biggest decision of his career.

To Andy Staples’ point. The contract for Cal is super easy to find online and clearly states he would receive monthly installments.

Say we do that though because it’s definitely possible. We will be paying him the second most money of any public school coach each year for the next 5 years…to not coach here!

He is 65 years old, doesn’t have to take another job and could still cash out.

However, that offset language is interesting and I’d love an experts opinion. In the contract it’s labeled as “minimum guaranteed salary”. Does that include the media portion of these contracts where all the money is? My thought is that it would not. For reference he has a base salary here of 400k. If he takes another job and the offset is only 400k a year that takes the buyout from 33.4M to 31.4M.

 

[rick64]

So lets just say Cal takes another job somewhere. Resigns and takes another college job or NBA job, whatever. Why does UK still have to payout his contract? Or is that part of the terms of the contract?

 

[FitchandMurray29]

So lets just say Cal takes another job somewhere. Resigns and takes another college job or NBA job, whatever. Why does UK still have to payout his contract? Or is that part of the terms of the contract?

Top of page 11 here.

https://legal.uky.edu/sites/default/files/2022-04/Coach_John_Calipari_Contract_0.pdf

The bottom of that section will be contentious imo and they might have to come to an agreement if firing is the path Mitch pursues.

 

[UKnCincy]

To Andy Staples’ point. The contract for Cal is super easy to find online and clearly states he would receive monthly installments.

Say we do that though because it’s definitely possible. We will be paying him the second most money of any public school coach each year for the next 5 years…to not coach here!

He is 65 years old, doesn’t have to take another job and could still cash out.

However, that offset language is interesting and I’d love an experts opinion. In the contract it’s labeled as “minimum guaranteed salary”. Does that include the media portion of these contracts where all the money is? My thought is that it would not. For reference he has a base salary here of 400k. If he takes another job and the offset is only 400k a year that takes the buyout from 33.4M to 31.4M.

It would include the media portion. Basically any amount that he is guaranteed to be paid and that is paid out regularly over the year would be used to reduce the amount UK has to pay him.

 

[UKnCincy]

One of the fine folks on here has been posting this for a while, can't remember who though.

Problem is, what if Cal doesn't take a new job, he is a petty human being after all and may want to stick it to UK if he is fired.

If the new coach gets $8 mil, Cal's $6 on top is $14 million. Now what if coach #2 doesn't work out and you're in double buyout range?

Lord I hope the Michigan rumors are true

He can’t simply choose to sit around. He has a duty to mitigate and has to make reasonable efforts to find a new job.

 

[BlueBomb]

Staples also said the assistant coaches have buyouts.

 

[LXWildcat]

Staples also said the assistant coaches have buyouts.

Time to clean house and get rid of everyone that has any tie to Cal. Except for Ulis and Welch we can keep them

 

[KAB Cats]

Whether lump sum or scheduled payments, 33 million is 33 million. And that 33 million could be used other places. I don't think that really changes much.

 

[ukcatz12]

If the new coach gets $8 mil, Cal's $6 on top is $14 million. Now what if coach #2 doesn't work out and you're in double buyout range?

And this is exactly how you find yourself in Indiana's situation. I know many think we're there now, I don't. They've only made the second weekend three times in the last 20 years.

But getting stuck under a mountain of buyouts from getting the coaching search wrong too many times is how you end up there. It's why Payne got a second year. Louisville couldn't be paying three coaches at once.

The importance of getting the next hire right cannot be overstated.

 

[ptril]

If Coach takes a tv job as a college basketball analyst, would that count as a job for the purpose of calculating the amount UK would owe ?

 

[UKnCincy]

Whether lump sum or scheduled payments, 33 million is 33 million. And that 33 million could be used other places. I don't think that really changes much.

While true, it’s also true that the only way it ends up being $33 million is if Calipari actively seeks another coaching position and is unable to convince a school to hire him before 2029. That seems unlikely to me.

Once Calipari takes another job, the buyout is reduced by however much the new school is paying him.

If the administration were to seriously consider firing him, then that’s what they have to weigh. For example, if UK were to fire Calipari and another school immediately hires him for $7M per year through 2029, then UK would owe him nothing.

So UK would simply need to weigh how much risk they’re willing to take on.

 

[FitchandMurray29]

It would include the media portion. Basically any amount that he is guaranteed to be paid and that is paid out regularly over the year would be used to reduce the amount UK has to pay him.

The last section of the buyout portion of the contract is interesting. It reads as if he couldn’t Russel Wilson them with a minimum contract elsewhere due to the “reasonable market value of the position” provision but defining market value for this would seem to be very tricky to me at least.

Negotiating a settlement without offsets would seem the cleanest way for everyone moving forward if Mitch decides to make a change.

 

[FitchandMurray29]

He can’t simply choose to sit around. He has a duty to mitigate and has to make reasonable efforts to find a new job.

Ed Orgeron having no duty to mitigate in his contract was incredibly wise.

 

[dl51344]

Work buy out of Cal. Promote an assistant temp. Give him a little raise. Review if stays or goes at end of year. Any of them would do as well as Cal. At least we wouldn't be sick of our stomach going into another year.